Just as the state and borders are finally open again, the great grey nomad dream has taken another hit … skyrocketing fuel prices!
With no immediate end in sight to the conflict in Ukraine, the global instability is causing oil prices to rise and that’s meaning serious pain at the bowser for long-term travellers.
Caravanner Keith Jarrett says it’s bitterly ironic that fuel prices have ‘increased to the point of despair’.
“After Covid and the floods, what else is going to be thrown at us nomads?” he asks.
Grey nomad Greg Claydon is equally downbeat. “How can we afford this on the aged pension?” he asks. “My cost to fill up is over $200 … we have cancelled our van trip until this madness goes away.”
Rising petrol prices are sure to have an impact on budgets
Nationally, the average price of 91 octane petrol today was $2.21 per litre, with diesel also costing $2.21 per litre.
However, as most grey nomads are all too aware, fuel prices can vary wildly, especially as you get out into more remote areas At the Nullarbor Roadhouse, for example, at the time of writing, ULP 91 was being sold at $2.72 per litre, and diesel at $2.85.
So, as grey nomads sit and try to recalculate their budgets, what can they expect going forward?
Commonwealth Securities senior economist, Ryan Felsman, says the situation is fluid.
While Brent crude oil is currently hovering around the $US122 per barrel mark, he says there is still a risk it could shoot up to $150 a barrel if global tensions escalate further. Mr Felsman warns petrol prices in Australia could reach $2.50 a litre in coming weeks.
With Treasurer Josh Frydenberg currently preparing for his March 29 budget, there are growing calls for him to cut the 44 cents a litre fuel excise … but there is no sign yet of whether or not he will do that.
While the average motorist is feeling the petrol pump pain, it’s fair to say that the average grey nomad is feeling it a lot more.
In March last year, the average price of unleaded fuel was $1.39 per litre. For a grey nomad who uses 17 litres of ULP per 100 kilometres, the cost of travelling 500 kilometres back then would have been $118.15. Today, that cost would be $187.85 … a whopping $69.70 extra.
That’s got to hurt, but many grey nomads remain stoic.
“After being grounded by Covid we’ll just have to grin and bear it,” said Oliver Thomas. “I’m not worrying about whether I can afford to go … I’m watching the birthdays tick by and I’m darned sure I can’t afford to wait.”
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We will spend less in the towns that we stay in.
A lot of nomads I talk to are going to take at least one tank of juice off there trip, in the way that if they planned to go to Cairns they will only go to townsville or those that go say to Mackay will only go as far as rocky or yepoon.Same as going west or similiar other states No matter which way some towns are going to miss out on the grey nomad dollars, which is a real pity as many rely on us.In the end everything that is on a truck will go up in price.